Dar es Salaam. Tanzania Forestry Services Agency (TFS) has called for international carbon trade which takes into consideration interests of all parties.
The call was made in Dar es Salaam today by TFS Chief Executive Officer, Prof Dosantos Silayo when briefing the media on the performance of the Agency in the last three years.
“This trade should be conducted in such a way that the ultimate intended goals are achieved without letting someone benefit more or lose more from the trade,” he insisted.
He made the remark when responding to a query from Habitat Media which sought his comments over allegation that carbon trade has been established as a pretext through which rich countries would use poor nations to circumvent their obligation in ensuring cleaner world.
Carbon trade involves buying and selling of credits that permit a company or other entity to emit a certain amount of carbon dioxide or other greenhouse gases. The carbon credits and the carbon trade are authorized by governments with the goal of gradually reducing overall carbon emissions and mitigating their contribution to climate change.
Under carbon trading deals firms in developed country usually offer money as compensation to firms which undertake activities which help to reduce carbon emissions.
Tanzania has been involved in various carbon trading initiatives, particularly related to projects aimed at reducing carbon emissions through activities such as reforestation, renewable energy projects, and sustainable land use practices.
Tanzania aims to raise $1 billion through carbon trading this year, according to Minister of State in the Vice President Office in charge of Union and Environment, Dr Selemani Jafo.
Speaking last month Dr Jafo noted that 39 carbon projects have already been registered with the government, while 12 have received the green light to proceed.
The minister also highlighted some early successes in reaping the benefits of carbon trading. Tanganyika District Council is expected to receive Sh14 billion ($6.1 million), while Mbulu and Kiteto District Councils have already secured Sh4.8 billion ($2.1 million).
These funds represent direct financial gains for local communities, potentially bolstering economic development and conservation efforts.
“This ambitious revenue target reflects Tanzania’s significant potential in the carbon market. The country boasts vast forests crucial in absorbing carbon dioxide from the atmosphere. Additionally, initiatives like REDD+ (Reducing Emissions from Deforestation and Forest Degradation) have emerged as viable avenues for generating carbon credits, which can be sold on international markets,” he said.
However, precise data on the exact volume of carbon credits traded from Tanzania is not readily available.
Prof Silayo insisted however that in order to ensure that the arrangement works properly the deals should aim at ensuring that each party involved in the transaction benefits.
“We should make sure that the ultimate goal that is reducing carbon emissions is reached. We should also make sure that those involved in activities which produces more carbon emissions are checked and compelled to reduce the emissions,” he said.
Prof Silayo said it would be useless to allow those who produce more carbon to be left to continue with their activities simply because they provide compensation money.
He noted that given the sensitiveness of the issue President Samia Suluhu Hassan has called for caution when dealing with the carbon trading deals.
“But on the other hand we should also take note that even if we refuse to receive the compensation those inv0onved in activities which increases carbon emission will continue to do so. Therefore we must sit together and agree on how to go about this issue,” he insisted.
Carbon Trade Value
Value of carbon credits traded depend on market prices, project quality and the volume of credits involved. Carbon credit prices can fluctuate based on global market dynamics, regulatory changes and the demand for carbon offsets by businesses and governments aiming to meet their emission reduction targets.
Tanzania has been actively participating in international efforts to combat climate change, including engaging in carbon trading mechanisms such as the Clean Development Mechanism (CDM) under the Kyoto Protocol and more recent initiatives like the Paris Agreement.
Status of Tanzania in carbon trading might change as countries around the world increasingly focus on reducing carbon emissions and mitigating climate change.
Tanzania, like many other countries, has been affected by climate change and is likely considering various strategies to address it, which could include participation in carbon trading schemes.
Carbon trade has emerged as a significant mechanism in the global fight against climate change. In Africa, where the impacts of climate change are increasingly pronounced, carbon trade presents both opportunities and challenges.
Africa, despite contributing minimally to global greenhouse gas emissions, is disproportionately affected by climate change. Extreme weather events, rising sea levels, and disrupted agricultural patterns threaten the continent’s socio-economic development.
In response, African nations have increasingly embraced initiatives to mitigate carbon emissions and adapt to changing climatic conditions. Carbon trade has emerged as a promising avenue for incentivizing emission reductions while promoting sustainable development.
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